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UC + Pension

Bit of advice needed. My ex partner needs to move to an assisted living flat (which she intends to purchase) due to a deteriorating health condition. She recieves benefits including UC. She has a private pension which she would need to access as part payment for the flat. As I understand it the moment the money hits her bank account the DWP would class this as income, but from what I have read it seems unclear whether or not whether she could purchase the property or not using this money. Its vital that she doesnt lose any benefits as there is a rather large service charge which she would need to pay monthly.

Comments

  • NedS
    NedS Posts: 5,872 Ambassador
    Seventh Anniversary 1,000 Posts Photogenic Name Dropper
    edited 14 August 2025 at 2:53PM
    If it's a one off lump sum then it's treated as capital, not income, and she can use this to purchase a property in which she intends to live, and that would not be classed as deprivation of capital.
    If she still has the lump sum at the end of her assessment period then it may affect her entitlement to UC. Capital over £6k reduces entitlement to UC and capital over £16k would end the UC claim, so best to arrange the withdraw such that it can be used to purchase the property immediately. 
    Any regular income would be deducted pound for pound from her UC entitlement each month.
    I am a Forum Ambassador and I support the Forum Team on the Benefits & tax credits, Heat pumps and Green & Ethical MoneySaving forums. If you need any help on those boards, do let me know. Please note that Ambassadors are not moderators. Any post you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own & not the official line of Money Saving Expert.
  • NedS said:
    Any regular income would be deducted pound for pound from her UC entitlement each month.

    regular income from the pension would be deducted £ for £. I can't help being picky!
  • Thanks yes I did mean capital not income.
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